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Ch.20
Term | Definition |
---|---|
Consumer | Someone who buys a good or service. |
Disposable Income | Money income left after all taxes on it have been paid. |
Discretionary Income | Money income left after necessities have been bought and paid for. |
Consumerism | A movement to educate buyers about the purchases they make and to demand better and safer products from manufactures. |
Comparison Shopping | Buying strategy to get best buy for the money. |
Warranty | The promise made by a manufacturer or a seller to repair or replace a product within a certain time period if it is faulty. |
Budget | A plan for making and spending money. |
Income | Money received from labor, business, or property. |
Expense | Money spent on goods and services. |
Credit | Money borrowed to pay for a good or service. |
Annual Percentage Rate | Annual cost of credit expressed as a percentage of the amount borrowed. |
Collateral | Property or valuable item serving as security for a loan. |
Bankruptcy | Inability to pay debts. |
Save | To set aside income for a period of time so that it can be used later. |
Interest | The payment people receive when they lend money or allow someone else to use their money. |
Principal | The most important. |
Return | Profit earned through investing. |
Stock | Ownership share of a corporation. |
Dividend | Payment of a portion of a company's earnings. |
Bond | Contract to repay borrowed money with interest at a specific time in the future. |
Mutual Fund | Pools of money from many people who are invested in a section of individual stocks and bonds chosen by financial experts. |
Evaluate | To assess or find the value of. |
Commit | To pledge or assign oneself to a particular action. |
Eliminate | To get rid of. |